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(TCI) Are Part of the British Overseas Territorie View metadata, citation and similar papers at core.ac.uk brought to you by CORE provided by Portsmouth University Research Portal (Pure) The Turks and Caicos Islands BACKGROUND Geography The Turks and Caicos Islands (TCI) are part of the British Overseas Territories in the Caribbean, situated some 575 miles southeast of Miami. The TCI are part of the Bahamas chain and cover some 193 square miles (430 square km). To reach the 40 TCI atolls (or cays), you take a short 75-minute flight from Miami. Six of the TCI islands are permanently inhabited: Grand Turk, Salt Cay, South Caicos, Middle Caicos, North Caicos, and Providenciales. Grand Turk has the highest elevation at 163 feet and is home to the territorial capital, Cockburn Town. Providenciales, often called “Provo,” is the business and tourist center and remains the most populous island. The major languages are English and Creole. Population The total population counted 33,202 in 2006, with an estimated indigenous “Belonger” population of 11,750 (34 percent) and 21,452 “non-Belongers” (66 percent). The estimated population for 2007 was about 34, 862. In 2007 about 400 to 500 illegal “boat people” per week were coming to the TCI.1 Provo-island houses a new detention facility for illegal immigrants. Non-Belongers consist mostly of immigrants from Haiti and the Dominican Republican, as well as American, Canadian, British, and other European expatriate residents and workers. Though Belongers are not fully defined in law, the TCI Constitution makes frequent reference to them. For example, a person seeking appointment to office in public or government service must be a Belonger. 2 The majority of the population is of African descent, the rest being of mixed race. About 14,000 former TCI islanders live in the Bahamas and some return for seasonal work. TCI’s population is mostly Protestant Christian.3 Economy The main economy is based on tourism and offshore financial services, with the United States and Canada being the leading sources of those businesses. TCI is a “zero tax” jurisdiction. It has no income, capital gain, wealth, gift, or inheritance taxes. TCI has no tax treaties with any other jurisdictions. The major sources of government revenue include stamp duties, customs receipts, and fees from offshore financial activities. The U.S. dollar is used as the local currency. TCI has no central bank or monetary authority. There are no restrictions on movement of funds into or out of TCI. The TCI have a structure for financial supervision that encompasses banking, insurance, mutual funds, investment brokers, trusts, trustees, companies’ registrations, and company service providers. The banking sector, consisting of seven banks, is small but pivotal in the financial structure of TCI. Specialized insurance, in the form of producer-owned reinsurance companies (PORCs) is a major and growing line of business in the offshore financial sector. TCI trusts and corporate vehicles for offshore clients provide the basis for an active trust and company service provider sector.4 Recently, the TCI have seen an upsurge in cruise ships and their registration on Grand Turk. The economic and financial structure of TCI and the corporate vehicles available under TCI law make it vulnerable to money laundering. A variety of money laundering cases involving TCI have been prosecuted or are under investigation. Annual tourism amounted to about 200,000 in 2007, particularly with holiday makers from Canada. This is one of the reasons why the Canadian government has made continuous efforts to annex the TCI over the past years. The labor force totaled around 12,000 workers in 2008, of which over 50 per cent were unskilled non-Belongers. Additional social and economic indicators are presented in Table 1. [Table 1 here] History There has been a considerable amount of political conflict surrounding the ownership of the Turks and Caicos Islands not only within the Caribbean, such as Bermuda and the Bahamas, but within the British Empire. The Spanish explorer Juan Ponce De Leon first put these cayos (small islands) on the map in 1512. After brief Spanish rule in the fifteen hundreds, the Caicos Islands served as a hideout to pirates, such as Francois L’Olonnais, Blondel, Captain Dulaien, Jack Rackham, and two infamous female pirates, Anne Bonny and Mary Read. The Turks islands were occupied by the French, Spanish, or British, in turn. One might well describe the inherent racial strife that exists on TCI as being a conflict between Belongers and non-Belongers. Some of it results from the fact that both Bahamians and Turks claim that Christopher Columbus first discovered their shores on October 12, 1492. The Bahamas renamed Watling Island as San Salvador and TCI passed similar legislation for their national park, by renaming one of their cays. Both nations celebrate Columbus Day on 12 October each year. Historical data is patchy, though the museum on Grand Turk Island provides some useful archived material that tells us that Bermudans arrived on these islands during the mid-sixteen hundreds and started a thriving salt business. Some of the main salt ponds ( salinas ) survived until the mid-twentieth century, with the new prison, Her Majesty’s Prison (HMP) Grand Turk, built on the largest salina. Bermuda was then in possession of the Turks from the mid-sixteenth century onwards. Thereafter, for about a century, the rule of English law prevailed throughout the Commonwealth. Spanish and French forces seized the Turks islands in 1706, but Bermudian forces expelled them four years later in what was probably Bermuda’s only independent military operation. When the American Declaration of Independence of 1776 left British loyalists (Tories) from South Carolina and Georgia without a homeland, many took advantage of British Crown Land Grants and settled on the TCI. Salinas and cotton plantations prospered for nearly 25 years until the boll weevil (cotton bug) destroyed them. The TCI were formally federated with the Bahamas under the Bahamas Act of 1799 . In 1806 the Bermudian customs authorities acknowledged Bahamian annexation when it ceased to allow free exchange between the Turks and Bermuda. This affected many enslaved Bermudians, who, like the free ones, had occupied the TCI only seasonally, returning to their homes in Bermuda after the year’s salt raking had finished. During the French Revolution (1789–1799), French privateers became a menace to British and American shipping in the West Atlantic and Caribbean, resulting in the quasi-war between the United States and France and to the Royal Navy (1798 – 1800) largely fought at sea. In 1807 the British Royal Navy seized hundreds of slaves from the Turks islands and set them free on the shores of the Bahamas, which is another reason why some Turk islanders’ roots can be traced to the Bahamas. The Slavery Abolition Act 1833 ended slavery in 1834 in the British Empire. Emancipation Day is celebrated to this effect on August 1 each year, heralding the liberation from slavery of millions of Africans in the diasporas of the Caribbean, particularly in the TCI, Anguilla, Guyana, Antigua, Barbados, Bahamas, and Bermuda. During the 1840s the British government assigned political control of the TCI to the Bahamas, but in 1848 the TCI gaining full colonial status and separation from the Bahamas with their own elected legislative board and an administrative council president. However, in 1873, the TCI were annexed to Jamaica and it remained under Jamaican rule for some 90 years, until Jamaica gained independence in 1962. Until then, the Turks and Caicos islands were part of the Federation of the West Indies. On May 31, 1962 the TCI became a British crown colony with its own administrator, but in 1965 the governor of the Bahamas took over governance of the TCI. When the Bahamas gained independence from the United Kingdom in 1973, the TCI once again became a constitutional self-governing part of the British Overseas Territories. In 1974 a Private Member’s Bill from the Canadian House of Commons by Max Saltsman, Leader of the New Democratic Party, proposed that the Turks and Caicos Islands be annexed to Canada. However, the bill did not succeed in the Canadian House of Commons. In 1976 the TCI were granted their first full Constitution establishing an elective form of government. This Constitution was suspended in 1986.5 A new Constitution followed in 1988, which was eventually superseded by the present Constitution of 2006 and brought into force with the Turks and Caicos Islands Constitution Order 2006 .6 Governance Today TCI is an internally self-governing Overseas Territory (OT) of the United Kingdom with a ministerial system of government. The British monarch, Queen Elizabeth II, is the sovereign of all OTs, represented by respectively appointed governors. The United Kingdom’s Foreign and Commonwealth Office overseas all OTs’ policies and supports the appointed governors. The governor of TCI retains responsibility for internal security, external affairs, defense, public service, and offshore finance. The governor appoints the judiciary, as well as the attorney general and the chief secretary. The ministerial system of government of the TCI has a premier as head of government. The TCI’s Executive Council consists of three ex-officio members plus five appointed members by the governor chosen from among the members of the Legislative Council. The TCI Cabinet is comprised of the governor, the premier, six ministers, and the attorney general. The governor chairs the Cabinet and is responsible for external affairs, defense, internal security, and the regulation of international financial services. The TCI Parliament is referred to as the House of Assembly and consists of the speaker, 15 elected members, four appointed members, and the attorney general. The governor grants Belonger status on the basis of the length of time that a person has stayed in the TCI, the contribution they have made to the country and how they have assimilated into the community.
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